Insurance Payout on Mods

[Mick the Quick]

Does anyone have experience dealing with an insurance company to try to recover a fair depreciated value of the mods destroyed (or otherwise not recoverable) as a result of an accident or theft? Some mods can easily be removed, but others cannot be removed or might be damaged beyond salvage due to the accident or theft. We are assuming, of course, that the car has full coverage and a deductible.

I am using the term "mods" to include things that might be considered "accessories." So, I am talking about everything, from tint, vinyl wrap, aftermarket wheels, body kit, exhaust, tunes, door sills, audio upgrades, wind visors, so on and so on.

In case you are wondering . . . . nope, fortunately, I have not experienced those events with a CTR (knock on wood). However, I am curious what would be the typical experience. Obviously, I realize that the actual terms and conditions of your coverage would be governed solely by the text of the actual policy you have. However, I am sure that there are some industry standard practices.

I'd further assume that, if they do provide coverage on the mods, you'd need to present all the receipts for them and that the insurance company would only pay a heavily depreciated value for the mods.

Can anyone with experience shed some light on this?

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[ThatTypeRDude]

From my experience, although not on my type r, keep all your receipts. At least in Florida, insurance companies will give you at least %50 of what you paid for your mods. No depreciation on the mods, just cost. They will ask for your receipts to prove how much you paid for the parts, otherwise they won't give you anything.

 

[typemismatch]

From what I've understood in the past, they cover things sitting in the car but not anything that's installed permanently on the car, unless you add coverage specifically for the installed mods.

Things may have changed, but that's what I remember.

 

[Micah]

AMICA insurance will cover modifications but they require you to tell them the list of parts ahead of time and provide receipts for each as they will be adjusting the policy cost accordingly.

 

[ez12a]

AMICA insurance will cover modifications but they require you to tell them the list of parts ahead of time and provide receipts for each as they will be adjusting the policy cost accordingly.

+1

Ive heard this is what you need to do. If you want it truly covered, you need to ask. It will also impact your premium, obviously.

 

[Mick the Quick]

+1

Ive heard this is what you need to do. If you want it truly covered, you need to ask. It will also impact your premium, obviously.

Great, the last thing I need is my insurance broker employee second guessing my mods . . . . "Why would you want to get tint?" . . . . "Do you really need a downpipe?" . . . . . "WTF is Hondata?" lol, it's like a second mom.

 

[Micah]

Great, the last thing I need is my insurance broker employee second guessing my mods . . . . "Why would you want to get tint?" . . . . "Do you really need a downpipe?" . . . . . "WTF is Hondata?" lol, it's like a second mom.

Not even almost. They are more than happy to increase your insurance premium and will let you tell them all the detail you wish. AMICA increased my premium by three hundred dollars when I let them know I wanted my mods covered (upgraded turbo, full exhaust, built head, upgraded intercooler). Never had an accident with it, honestly wouldn't bother telling an insurance company parts were modded in the future.

 

[Mick the Quick]

Not even almost. They are more than happy to increase your insurance premium and will let you tell them all the detail you wish. AMICA increased my premium by three hundred dollars when I let them know I wanted my mods covered (upgraded turbo, full exhaust, built head, upgraded intercooler). Never had an accident with it, honestly wouldn't bother telling an insurance company parts were modded in the future.

I hear you. It just reminds me of the time I tried to insure an M3 in NYC long time ago. The premium was going to be like $9,000 per year (probably like 12,000 in today's dollars?) . . . . the young girl that worked at the insurance brokerage firm was almost crying (not exaggerating), "please don't get this car! That's way too much!" She was right . . . . but I knew I was getting married in a few months and moving out of the city (new premium in the new location: $800 per year). But that's why I feel like these employees like to be nosy and judgmental.

 

[rajahdat]

Every insurance agency is different, I think you can opt for $5k without specifying the parts but that adds cost to the premium to be paid. I recently had a car stolen with $12-15k in parts not including the car, yes it was a honda. My insurance only paid out total $7k total. Honestly If you mod your car most major agencies will say they will cover the parts but essentially when its time for a claim they will prolong the pay out and give you "oem" pricing. I now use specialty insurance after that kerfuffle and I haven't looked back.
Receipts must be saved to show value and make sure the receipt has your VIN associated also.

 

[lawl]

I hear you. It just reminds me of the time I tried to insure an M3 in NYC long time ago. The premium was going to be like $9,000 per year (probably like 12,000 in today's dollars?) . . . . the young girl that worked at the insurance brokerage firm was almost crying (not exaggerating), "please don't get this car! That's way too much!" She was right . . . . but I knew I was getting married in a few months and moving out of the city (new premium in the new location: $800 per year). But that's why I feel like these employees like to be nosy and judgmental.

What combination of factors led you to that premium? did you bang the insurance company owner's wife?

holy crap

 

[Mick the Quick]

What combination of factors led you to that premium? did you bang the insurance company owner's wife?

holy crap

Just the location and the type of the car, dude. I had a clean driving record, and no accidents for 5 years or more at that point.

 

[Micah]

I always buy the cheapest variant on https://www.cheapautoinsurance.com/ very useful online service. You can find the best variant for your state, because the insurance prices from different companies may differ significantly.

I checked the rates on that site, they claimed Esurance was the lowest offer. I received lower offers from Amica, and Travelers, and NJM. NJM was the lowest.

 

[Gansan]

Does anyone have experience dealing with an insurance company to try to recover a fair depreciated value of the mods destroyed (or otherwise not recoverable) as a result of an accident or theft? Some mods can easily be removed, but others cannot be removed or might be damaged beyond salvage due to the accident or theft. We are assuming, of course, that the car has full coverage and a deductible.

I am using the term "mods" to include things that might be considered "accessories." So, I am talking about everything, from tint, vinyl wrap, aftermarket wheels, body kit, exhaust, tunes, door sills, audio upgrades, wind visors, so on and so on.

In case you are wondering . . . . nope, fortunately, I have not experienced those events with a CTR (knock on wood). However, I am curious what would be the typical experience. Obviously, I realize that the actual terms and conditions of your coverage would be governed solely by the text of the actual policy you have. However, I am sure that there are some industry standard practices.

I'd further assume that, if they do provide coverage on the mods, you'd need to present all the receipts for them and that the insurance company would only pay a heavily depreciated value for the mods.

Can anyone with experience shed some light on this?

My insurance (21st Century) includes a form with each renewal that gives you a place to list all the mods you have on the car, and the value of each. By letting them know exactly what accessories on your car in advance, there's much less chance of them suspecting fraud when you say your car had a bunch of expensive stuff when it got stolen. It also lets them adjust your premium as needed.

 

[Mick the Quick]

My insurance (21st Century) includes a form with each renewal that gives you a place to list all the mods you have on the car, and the value of each. By letting them know exactly what accessories on your car in advance, there's much less chance of them suspecting fraud when you say your car had a bunch of expensive stuff when it got stolen. It also lets them adjust your premium as needed.

Wow, no insurance company has given me a form like that in like 30 years . . . . Then again, I never asked for one. On one hand, it would be good to have coverage on the mods, on the other hand, I don’t want to pay significantly more for the coverage and, most importantly, I don’t want the insurance company to know if I have performance mods. You know how they would look for any small thing to deny or limit coverage . . . .

 

[Mick the Quick]

I checked the rates on that site, they claimed Esurance was the lowest offer. I received lower offers from Amica, and Travelers, and NJM. NJM was the lowest.

I always wonder whether the “comparisons” done by Progressive, esurance, et al would actuallly provide the lowest quotes, since they have a conflict of interests.

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